Canada’s annual inflation rate fell dramatically in April to 0.4% from 1.0% in March, below expectations and well outside the Bank of Canada’s target range of 1 to 3%. It was the lowest since 0.1% in October 2009. Statistics Canada said on Friday prices fell by 0.2% on a monthly basis from March to April, pushed lower in part by cheaper gasoline and cars helped.

Spot price of gold traded down by 32 basis points (bps) at $1154.81 per troy ounce yesterday. The weakness in the yellow metal came as a result of expectations of an interest rate hike in June this year, diminishing the metal’s appeal as a safe-haven investment.
The US Dollar Spot Index traded down by 63 bps at 99.701 points yesterday. The index, which tracks the international value of the greenback, reached its 12-year high, crossing 100 points level on Friday. The index had reached a high of 11.39 points during trading on Friday.

Wall Street was higher on Monday morning, buoyed by energy stocks and a rebound in financial stocks following a pounding on Friday after a dismal jobs report all but ruled out chances of an interest rate hike in June.
Federal Reserve Chair Janet Yellen, who recently signaled that a rate hike could come as soon as June, is schedule to speak at 12:30 p.m. ET (1630 GMT) and investors will scrutinize her comments for clues on the timing of the next rate hike.

NEW YORK: Data on inflation and employment, two of the economic indicators most important to a "data-dependent" US Federal Reserve are expected next week.
While Fed policymakers will be looking at those numbers as they decide whether to raise key interest rates as soon as June, traders will read through them to try and get ahead of the Fed decision.
For most of the current bull market, stocks have sold off on expectations of tighter monetary policy. But they rose sharply over the past week as Fed-speak turned more hawkish.

US stocks were little changed on Wednesday ahead of Federal Reserve Chair Janet Yellen's speech. Data showed that the private sector added the most jobs since June as markets awaited clues from Yellen on an expected interest rate increase on Dec. 16. Yellen will speak before the Economic Club of Washington at 12:25 p.m. ET (1625 GMT). She also testifies on the economic outlook before a joint committee of Congress on Thursday. The economic data has not been playing ball with the Fed's policy plans in recent weeks and has been mixed at best.

LONDON/SYDNEY: Massive monetary stimulus from Chinese and European central banks has done little to spur factory growth, moving a debate over more easing up the agenda and raising doubts over whether US interest rates will rise this year. A crop of industry surveys out on Monday pointed to October as another subdued month. Activity in China's colossal factory sector shrank as global demand stuttered while euro zone factories again resorted to slashing prices to drum up trade. "We do think there is more easing to come in China.

OTTAWA — Canada’s labour market will emerge from the shadow of the United States next week, at least temporarily. But the outlook for job creation here will remain cloudy at best.
Most analysts are forecasting another month of moderate hiring in June, with anywhere between 22,000 and 30,000 positions being created. The latest employment tally from Statistics Canada, to be released Friday, will be one of two major data releases in the coming days.

LONDON: Gold fell on Friday ahead of U.S. employment data that could bolster prospects for an interest rate increase this year and the precious metal was heading for its third straight weekly slide. Traders awaited the key U.S. non-farm payrolls report due later in the day for more clues on the world's biggest economy and how it might impact the Federal Reserve's interest rate policy. Spot gold was down 0.1 percent at $1,174.96 an ounce by 1133 GMT, within reach of a five-week low of $1,172.55 hit in the previous session. The metal was heading for a 1 percent fall on the week.

TOKYO: Asian shares edged up on Thursday on vague hopes of a rescue deal for Greece while the dollar was at the helm in currency markets on expectations that the US Federal Reserve will raise rates later this year. Japan's Nikkei rose 0.6 per cent while MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.1 per cent, with South Korean shares leading the gain with a rise of 0.5 per cent. "It seems like hopes on Greece drove the market.